TUFTWEEN PETROCHEMICALS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) IN these 4 appeals - 3 filed by M/s. Tuftween Petrochemicals and one appeal filed by Revenue - the issue involved is about the availability of Cenvat Credit in respect of Special Boiling Point Spirit (SBPS in short).

(2.) SHRI Bipin Garg, learned Advocate, submitted that the assessee manufacture number of adhesives and Organic composite solvents and avail of Cenvat Credit of duty paid on inputs; that the Revenue has disallowed the Cenvat Credit in respect of inputs namely Cixon and SBPS on the ground that these are excluded from the definition of inputs as given in Rule 2(g) of the Cenvat Credit Rules, 2002 being motor spirit commonly known as petrol. The learned Advocate, further, submitted that the definition of the input as given in Cenvat Credit Rules excludes High Speed Diesel Oil and Motor Spirit commonly known as petrol; that the inputs in respect of which they are availing Cenvat Credit are not commonly known as petrol; the petrol is one of the variety of motor spirit and all motor spirits are not petrol. In support of his contention he referred to Notification No. 2/2002 -C.E., dated 11 -1 -2002 which exempts all goods, other than motor spirit commonly known as petrol falling under sub -heading 2710.19 of the Schedule to the Central Excise Tariff Act; that this clearly shows that all other motor spirit other than petrol falling under sub -heading 2710.19 are exempted under the Notification. He also mentioned that motor spirit falls under Heading 27.10 and then there are various sub -headings referring to Special Boiling Point Spirit, Naptha, Natural Gasoline liquid and others; that by no stretch of imagination Naptha could be treated as petrol which is used for running motor vehicles. He relied upon the decision in the case of Indian Airlines Ltd. v. C.C. Cochin - 2002 (150) E.L.T. 496 (Tribunal) wherein it has been held that mere fact that both aviation turbine fuel and kerosene fall under the same Tariff Heading would not mean that whatever exemption is available to kerosene would automatically be available to A.T. fuel also. The learned Advocate has also drawn our attention to the letters of M/s. Bharat Petroleum Corporation Ltd. and GAIL (India) Ltd. wherein it is mentioned that SBPS is not known as petrol and these products are different from petrol. Finally he referred to the invoices issued by M/s. GAIL (India) Ltd. for clearance of SBPS which has been cleared without payment of Additional Excise duty which is leviable on petrol, in support of his contention that SBPS is not petrol. The learned Advocate also mentioned that there are different Indian Standard Specifications for petroleum hydrocarbon solvent (IS:1745 -1978) and for motor gasoline (i.e. IS:2796 - 2000).

(3.) WE have considered the submissions of both the sides. Cenvat Credit in respect of Cixon and SBPS has been disallowed to the assessee on the ground that these are motor spirit which is synonymous with petrol and motor spirit commonly known as petrol is excluded from the definition of inputs in Rule 2(g) of the Cenvat Credit Rules. Heading 27.10 reads as under : -